Apple is giving App Store developers a new way to attract subscribers with lower-priced plans tied to a yearlong commitment. The company announced on Monday it will introduce a new subscription option that lets customers pay for their auto-renewing subscriptions on a monthly basis, while committing to a 12-month plan. This model will allow developers to offer discounted rates to customers in exchange for more predictable long-term revenue.
This also caters to how many developers have already been marketing their annual subscriptions in their apps. Often, app developers will display the lower monthly price to highlight the discount the customer would receive if they purchase the annual subscription instead of the monthly option. If the user is on the fence about a longer-term commitment, the notion that they’re getting a better deal can help to push them toward the annual option.
Now, Apple is essentially formalizing what these developers were already doing, which allows it to also craft a set of policies around how these subscription offers are to be displayed so as not to mislead customers about the true cost of the deals.
However, the option will not be available to developers in the United States or Singapore at launch. While Apple didn’t offer an explanation for this, it’s still in App Store litigation in the U.S. around the specifics of the court’s ruling in its case with Epic Games around how Apple can charge for subscriptions. Apple likely doesn’t want to complicate the matter further until that matter is finalized.
Singapore, meanwhile, also has a sophisticated payments market with strong consumer rules, which is why it may have been left out of the initial release.
Image Credits:Apple
Customers will be able to view additional information about the subscription before committing, including how their payments are structured and how cancellation w …